June 2, 1999
Mr. Frank Lawrence, Jr.
941 Westview Road
Bloomfield Hills, Michigan 48304
You have lodged a complaint against a federal credit union (FCU)
for disclosing information about its members to a third party
and assert that such disclosure is in violation of the credit
union's confidentiality bylaw. FCU Bylaws, Article XIX, Section
2. Upon the request of the NCUA's regional office, the Office
of General Counsel has reviewed the correspondences exchanged
among yourself, the credit union, and our regional office. This
office supports the regional director's determination and reiterates
the position taken in the letter from Richard S. Schulman to James
F. Maher, dated April 22, 1996, a copy of which is enclosed.
NCUA's long-standing policy is not to interfere in internal FCU
disputes unless a statutory or regulatory problem exists or the
safety and soundness of the FCU is involved. None of those problems
are apparent in your complaint, and we do not believe that it
would be appropriate for NCUA to enter into this dispute. The
NCUA maintains that the bylaws function as a contract between
an FCU and its members. Therefore, local law controls whether
the FCU has breached its obligations to its members by disclosing
personal information about its members to a third party. If you
are interested in pursuing this matter, we suggest that you consult
with private counsel in order to review applicable local law.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/CJL:bhs
SSIC 3700
99-0512
Enclosure
cc: Region IV